Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

August 5, 2021

Get More For Your Business

By Marc Gudowitz

Business

You have worked extremely hard for many years building your business into what it is now.  Through the ups and downs, you have managed to keep your business viable and successful.  It has been a good ride, but the time has come, and it is now time for your business to work for you – you are ready to sell your business.

How do you get the most out of what will probably be the most important transaction of your life?

You devise the right plan, lay the groundwork and drive the process. 

Following these three simple steps will allow you to get the most out of your business.  If you don’t, you can leave money on the table, drag out the process, and risk the ongoing operation of your business.

The Right Plan

The key to developing the right plan is to have the right people advising you.  As you grew your business, your close advisors were there to help you along the way.  Your lawyer, your accountant and your banker were all key parts of your team that helped guide your success.  When it comes to selling your business, you will want to add a professional M&A Advisory and Business Brokerage firm to your team to help you through this last stage.  You may be tempted to try it alone, but the truth is you don’t know what you don’t know and the last thing you want is to do proceed in a manner that will undermine the entire process.  For the same reasons that you have your accountant prepare your tax forms and you lawyer represent you in court, make sure you choose a qualified, experienced M&A firm to work with you to devise a plan that is right for your specific needs.  A professional M&A firm will sit down with you to learn about your business, listen to your goals and will work with you to review your options to come up with your best plan for achieving those goals.

The Groundwork

Any building will crumble without a solid foundation.  The same can be said for any M&A deal.  It is critical to establish a credible basis from which a deal can be built upon.   That foundation is a proper valuation from an independent, certified valuation company.  This valuation will give you and your M&A advisors the tools to orchestrate a successful deal on your behalf.  It will establish the correct benchmark of the true value of your company.  Not the value you think it should be, not the value that your brother thinks it should be and not even the value that your accountant suggests.  An independent proper valuation is a report that will be regarded as a respectable, unbiased assessment by potential buyers and SBA lenders alike.  It will also set your expectations at the proper level as you begin to develop your marketing plans so you can make informed decisions as you move through the selling process.

As difficult as it may be to hear, you are significantly better off knowing your company’s true worth at the beginning of the process even if it’s far less than what you originally thought.  Once you have this accurate Fair Market Value (FMV), there are actions that your M&A Advisors may be able to take to help you to increase the value of your company.  On the other hand, if your company is worth more than you expected, you would leave money on the table by setting an initial asking price that is too low.  Either way, obtaining a proper valuation sets the stage for a successful transaction which will maximize the return on the sale of your company.

Driving the Process

Now that you have successfully and accurately defined the worth of your company and developed a plan with your M&A advisor and business broker, it is time to go to market.  What is the proper way to “go to market” and how can you effectively market your company while maintaining confidentiality?

  • It would very negatively impact your business, if your customers, vendors, competitors and employees learned of your plans before you were ready to reveal the news to them. Confidentiality and professionalism are critical to the marketing process and your M&A Advisor will manage that balance for you.  They should be experienced in marketing your company in a broad enough way yet keep your identity anonymous, as well as being able to target all potentially interested parties.
  • Your M&A Advisors should also have access to a large network of potential buyers. The greater initial exposure to investors increases the opportunity for multiple interested parties.  This can lead to a possible bidding war maximizing your return, and at the very least, provide additional negotiation leverage to you.
  • Your M&A Advisors should thoroughly prequalify potential buyers to ensure financial and managerial prerequisites are met. The last thing you want is to spend months negotiating with a potential buyer who doesn’t have the financial wherewithal to fund the transaction or support the operation of the company thereafter.
  • Lastly, your advisor will be looking out for your best interests. Your M&A Advisor will have a fiduciary responsibility to you and will make sure all is being done to maximize your financial return.  This will not be the case if a (buy-side) broker approaches you for a buyer that they are representing.   That broker will be looking out for their client’s best interests, not yours.  You want you and your team driving the process, not the other way around.

These are just a few of the many topics to consider when looking to sell your business.  As every business is unique, every M&A deal is different, and having the proper guidance to lead you through the inevitable minefield that you will encounter during this process will make all of the difference and will allow you to get the most for your business.

About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or info@neumannassociates.com

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Client Testimonials

“Working with Marc and his company was a pleasure. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. Marc handled most of the interaction and he has one of the greatest demeanors. Again, it was a pleasure working with him and his firm.”

Douglas DiCeglio

“I recently completed an acquisition using A Neumann & Associates. Tony Valentino was very helpful and accessible during the entire process. They do a thorough job vetting both parties and got us to the finish line.”

Srini Mudambi

“Claus out of Florida helped us with the sale of our business. We had never done anything like this and him and his team walked us through the process from start to finish. We had some challenges through the process and Claus continued to show up even in the difficult conversations.”

Colby Harris, Co-Owner, Del Mar Designs

“Claus Madsen thoroughly helped us with selling our company. From the 1st introductory meeting explaining to us what was possible, to providing us with resources to assist with the sale. Claus was invaluable throughout the whole sales process. Claus was with us every step of the journey and always made himself available for any questions or issues that came up along the way. If you are interested in selling your business, I encourage you to reach out to Claus and the ANA team so that they can let you know what’s achievable. These guys will make it happen!”

Ron Harris, Co-Owner and Vice President, Del Mar Designs

“A Neumann & Associates is the only business broker I would use or consult with. They have assisted with 3 business sales over the past 15 years with me. They are honest and sincere and have always performed better than my expectations. They are the only one i would use for the sales of my businesses.”

James Belanger, Business Owner

“I wanted to take a second to commend the exemplary customer service from both you [Karin Neumann] and Mr. Valentino. It’s both a rarity in the industry, and very much appreciated.”

Andrew G., Investor

“We worked with Neumann & Associates to investigate the purchase of a research company in 2010 and found Achim to be capable, forthright and realistic. His depth of experience enabled us to fully understand our options, offering creative options that might enable the acquisition. While we didn’t acquire that particular company at that time, we know exactly who to call whenever we’re looking to buy or sell a business.”

Daniel Coates, Buyer

“Purchasing a business through this firm was a pleasure. Gary was very professional and transparent throughout the entire process. I look forward to working with A Neumann & Associates in the future.”

William Klemens, Buyer

“I utilized A. Neumann & Associates to assist in an M&A process. They are VERY thorough in using their time-tested process to calculate the value of investment opportunities, a process which provided a very detailed explanation for the value of the potential opportunity. Additionally, they also went above and beyond to extend other services including connecting with others who specialize in your industry and can assist with necessary steps including legal and accounting. Highly recommended!”

Edward Lane , Business Owner

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Achim, who explained the process in detail. He had his colleague Gary come to my office in order to get a clear understanding of my business, and what I was hoping to accomplish. His patience in answering all my questions and his knowledge of the proper way to market my business gave me great confidence that this is the firm I will be using when the time comes for me to sell my business for max value. They gave me great insight into the steps I need to take now to get the best deal in the future. I highly recommend this firm to anybody who wants to sell now or down the road. They not only know their stuff, their actually just real nice guys.”

Robert Kardane, Business Owner
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Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please fill out our contact form, or call us at 732-872-6777. We will contact you directly and will never identify ourselves to your employees.

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